Before you file for bankruptcy, it is important to take a close look at both the advantages and disadvantages. Only then can you make an informed and confident decision on whether or not this is the best way to move forward.
Tip: if you are having a difficult time deciding what to do next, contact an experienced Philadelphia bankruptcy attorney to discuss your situation. This can help you better understand which steps to take next.
If you think filing for bankruptcy is the right decision, you should check the advantages, as they pertain to your situation, to ensure that you are making the best move for you and your finances.
Here are several reasons why so many people have turned to bankruptcy in the past:
1. Discharge eligible debt. The primary reason for filing bankruptcy is the ability to discharge some or all of your unsecured debts. There are many other reasons to file bankruptcy as well.
Keep in mind that Chapter 7 and Chapter 13 bankruptcy are not the same. You need to know which type you qualify for, as well as which type is best for your financial situation. This will determine which debts are eligible to be discharged.
2. Before you file for bankruptcy, you can expect to receive phone calls and inquiries from creditors on a regular basis. Are you fed up with this?
After filing for bankruptcy, all collection efforts from creditors will stop thanks to the automatic stay. This will give you time to regroup, consider your options, and determine what you want to do next if do not already have a plan.
3. The chance to avoid foreclosure. Like many, if you find yourself in a bad financial position your home could be in jeopardy. If you are behind on your payments and your lender has sent you a notice of foreclosure, there is no time like now for considering all your options.
With bankruptcy, you may be able to reorganize your debt, including your mortgage, as a means of keeping your home.
If you don’t understand the pros and cons of bankruptcy, you are in no position to make a decision on what to do next. Speak with a Philadelphia bankruptcy attorney about why this may be the best decision for you. From there, you can decide if now is the time to file.